NEWS

Report predicts increased shift to online retail over next 10 years

Published on: 11th July 2019

One in 10 people of all ages questioned for the report said they planned to shop more online in the year ahead.

As reported by The Guardian, Online shopping could more than double its share of the retail market by 2028, according to a report that spells further difficulties for landlords, stores and communities.

The internet is expected to account for 53% of retail sales in 10 years’ time, up from about a fifth at present, as younger people who have grown up with the internet become more than half the UK’s adult population, according to a report by the analysts Retail Economics for the law firm Womble Bond Dickinson.

One in 10 people of all ages questioned for the report said they planned to shop more online in the year ahead.

Richard Lim, of Retail Economics, said: “Successful retailers have always had to reinvent themselves to stay relevant. However, the pace of change will inevitably prove too fast for many. It definitely feels like the digital retail revolution is only just getting started.”

Richard predicts that new and emerging technologies such as artificial intelligence that could enable the automation of delivery and personalised marketing will drive future online growth.

The research is likely to fuel calls for action to protect communities and help to reinvent town centres after a wave of big name store closures. Landlords are also being asked to dramatically cut rents, while the government has been urged to take action on business rates, which are based on property and so hinder retailers with a physical presence. The British Retail Consortium says retail conditions are the toughest in a decade.

“The industry is undergoing a painful readjustment period,” Richard added. “The acceleration of further store closures will eventually lead to a more ‘inconvenient’ experience for some groups of consumers across many parts of the UK. Inevitably, this frustration will be a catalyst for further online shopping with consumers turning to online as an alternative to in-store purchases.”